Forex: Yen in range, as Greenback pauses for breath, trading 89.61

By IBT Staff Reporter On 12/15/09 AT 9:48 PM

FXstreet.com (London) - Post US trading on the USD/JPY has been largely range bound in the face of lacking local data, as both safe-haven currency look to the European and US sessions for cues. The pair has been oscillating around 89.60 as market player jostle for position ahead of important FED words, due tomorrow.

Currently trading at 89.61, the pair is likely to continue trading sideways on the advised trendline.

We primary and secondary support levels, should the pair retreat, at 89.43 (Low tested earlier in session) and after that 88.56, consolidation level on 15 Dec prior to the aggressive Dollar rally we witnessed off the back of hawkish FED expectation today.

Valeria Bednarik, collaborator at FXstreet.com, sees cap on the bullish Greenback run at the 90.00: Despite slightly bullish, upside remains capped by key 90.00 level, that the pair needs to clear to gain upside momentum. 20 SMA keeps guiding the pair to the upside, while hourly indicators point for some downside corrective movements, that should remain capped above 88.80 area; if this last gives up, downside movements could extend to next support around 88.50.